- Embattled Eskom is struggling to cover its expenses and to make matters worse the utility has lost R5 million worth of furniture
- A case of theft has yet to be opened after the items headed to the Kusile power station mysteriously disappeared
- With the state-owned entity requiring billions in bailouts, it appears some questionable financial decisions are being made
R5 million worth of furniture headed for the Wilge Residential Development project has mysteriously vanished, according to a Mail & Guardian report.
The R300 million project to house workers at the Kusile power station had been met with criticism as Eskom battles to keep the lights on.
R120 billion worth of cash injections have been allocated by the government over the next two years, Briefly.co.za gathered.
The furniture headed to the now-abandoned project has yet to be reported to authorities despite its R5 million price tag.
The utility has spent over R1 billion so far in order to rent accommodation for the employees meant to be living in the 336 units built for the project.
Attorneys have been appointed to conduct investigations into allegations of corruption, fraud and financial irregularities.
Eskom vows to take those implicated in any crimes on over the incident as soon as the outcome of the investigation has been presented to them.
Finance Minister Tito Mboweni touched on the financial side of things during his midterm budget speech, insisting that the entity is posing a danger to the fiscus:
“The SOEs pose very serious risks to the fiscal framework. Funding requests from SAA, SABC, Denel, Eskom and other financially challenged state-owned enterprises have increased, with several requesting state support just to continue operating. Isn’t it about time the country asks the question: do we still need these enterprises? If we do, can we manage them better? If we don’t need them, what should we do?”
Kusile has contributed to R161 billion of Eskom's R440 billion debt burden and the 2012 contract with the Liviero Group to construct flats has been a major cause for concern.
The group has gone under business rescue with one of its companies already having been liquidated.
In response to queries on the flats, which are incomplete and abandoned, the utility commented that:
“We have terminated the contractor’s obligation to complete the work and decided not to invest further in the project. Due to the fact that the envisaged accommodation was not available, Eskom had to resort to other means to house construction staff.”
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